Key Takeaways from the Fed's FOMC Statement 1. Statement Overview: Interest rate cut of 25 basis points to 3.50%-3.75%, marking the third consecutive meeting with a rate cut. Milan supported a 50 basis point cut, while Goolsbee and Schmid supported keeping rates unchanged. 2. Rate Outlook: Will consider the magnitude and timing of further rate adjustments. The median dot plot remains identical to September, projecting one rate cut each in the next two years. 3. Inflation Outlook: Inflation has risen compared to the beginning of the year and remains relatively high, consistent with previous statements. Inflation expectations for next year were revised downward in the SEP. 4. Economic Outlook: Economic activity has been expanding at a moderate pace, with high uncertainty about the outlook, consistent with previous statements. GDP growth projections for the next three years were revised upward across the board. 5. Labor Market: Removed the description of the unemployment rate as "low," noting that downside risks to employment have increased in recent months. The unemployment rate forecast for next year remains unchanged at 4.4%. 6. Reserve Bond Purchases: Treasury bill purchases will begin on December 12, with $40 billion in Treasury bills to be purchased over the next 30 days. The operational limits on the standing overnight repo facility have been removed.